Toyota Learned of Window Switch Defect Four Years Before Recall

By Angela Greiling Keane -
Oct 12, 2012

Toyota Motor Corp. (7203) first learned in
2008 about a defect in power-window switches that this week
prompted it to recall 7.43 million vehicles worldwide for fire
hazards, according to documents filed with U.S. regulators.

Toyota, based in Toyota City, Japan, received a report in
September 2008 from the U.S. about “an unusual smell” from the
power-window master switch and “thermal damage” to the switch,
the company said in a report posted yesterday on the U.S.
National Highway Traffic Safety Administration website.

The automaker sent the part to the supplier to investigate
and no “root cause” was found. No other problems with the
switch were reported until May 2010, when the company said it
began sporadically receiving information about an abnormal smell
or smoke coming from driver’s side doors, according to the
report.

“There was really no trend early on and it took
considerable time to diagnose what seemed to be an isolated
problem and how it was occurring,” John Hanson, a U.S.-based
spokesman for Toyota, said in an e-mail.

In 2009 and 2010, Toyota, Asia’s biggest carmaker, recalled
a record number of vehicles worldwide for defects that may cause
unintended acceleration. The company in April 2010 agreed to pay
a record $16.4 million U.S. fine for failing to promptly report
the flaws with vehicle accelerator pedals.

Nine Injuries

“I’m a little disappointed in that Toyota didn’t act
sooner especially because of the debacle in 2010 and, more
importantly, the tragedy in 2010,” said Rebecca Lindland, an
analyst with IHS Automotive, referring to deaths that occurred
due to unintended acceleration. “It’s not surprising that they
would delay given their pattern of resisting recalls
historically.”

The U.S. auto-safety regulator opened an investigation into
about 830,000 Camry cars and RAV4 crossover sport-utility
vehicles in February after receiving six reports of fires that
started in the window switch. It’s received reports of nine
injuries and 161 fires, Lynda Tran, a NHTSA spokeswoman, said.

“NHTSA is aware of the recall announced by Toyota” on Oct.
10 and is in contact with the manufacturer, Tran said in an e-
mail. “The agency’s investigation remains open pending its
review of Toyota’s documents regarding its recall action.”

Toyota didn’t mention any injuries related to the faulty
parts when it announced the recall two days ago because the
public relations department didn’t have the information at the
time, according to Dion Corbett, a Tokyo-based Toyota spokesman.

Corbett also said the automaker didn’t report any accidents
from the faulty parts because it defines “accidents” as
“collisions and crashes” and there were none resulting from
the switch defect.

‘Complete Panic’

With the increasing number of fire reports coming shortly
after congressional hearings and market-share losses in the U.S.,
Toyota would have likely been loath to recall more vehicles then
for another defect, IHS’s Lindland said.

“The last thing they could really withstand at that point
was another recall,” she said in an interview. “I would guess
the strategy may have been to address the 10 or 11 complaints
and avoid doing a recall at all costs.”

According to a report posted on NHTSA’s website, the driver
of a 2007 Camry reported noticing “black smoke throughout the
car” that “immediately turned into flames, which caused poor
visibility and complete panic” for the driver and three
passengers in the car on Dec. 26, 2011. The flames burned the
driver’s coat and a passenger’s hand as he tried to put it out.

‘Frightening Experience’

“It was a frightening experience for myself and family
members as I strongly feel that no one has a clear explanation
as to the cause of the fire and fails to ensure my family’s
safety and wellbeing,” the driver wrote in the report.

The recall includes about 2.47 million vehicles in the U.S.,
1.4 million in China and 1.39 million in Europe, Joichi Tachikawa, a Tokyo-based spokesman, said Oct. 10. It includes
vehicles from model years 2007 to 2009 from models including the
Camry, RAV4, Corolla, Tundra, Sequoia and Yaris.

Tokai Rika Co (6995), which Toyota confirmed in its NHTSA filing
as the supplier of the faulty switches, rose 2.5 percent after
slumping 9.6 percent yesterday to the lowest level since March
2009.